Warren Peace and Noah Lott are married. Warren Peace is 66 years old, while Noah Lott is 65 years old. Noah Lott is blind, but Warren Peace is not. They properly claim Noah Lott's sister-who is 58-as a qualifying dependent. They present the following information to you related to their 2022 taxes: Noah Lott earned the wages while working as a professor in Canada. He begins his stay in Canada on January 3, 2022 (which is not considered a United States day), and stayed there continuously, except when he came home for 20 days during the year. Because her assignment in Costa Rica ended, she returned to the United States permanently, and arrived on December 23, 2022. (FYI, 2022 was not a leap year.) Warren Peace began to receive annuity payments on February 1, 2022. He had originally purchased the annuity in 2007 for $209,979, and he will receive 210 monthly payments of $1,515 each. Additionally, during 2022, they report the following property-related transactions: (Note: these transactions are not included in any amounts presented previously.) - On March 1, 2022, they sold a printing press used in Warren Peaces business for $11,650. They had purchased this printing press on June 1,2020 , for $22,900, and at the time of the sale, had taken $5,452 of depreciation on it. They did not incur any selling costs. - They owned a warehouse which they used for business purposes. It had been originally purchased on April 1, 2018, for \$651,000, and has accumulated depreciation of $52,163 taken on it. They still have a mortgage of \$104,600 outstanding on the warehouse. On June 9, 2022, they exchanged the warehouse (which was worth $656,000 at the time) for forestry land (which was worth \$662,000) owned by Ty Coon. They plan on holding the forestry land in hopes it will increase in value. Ty Coon also assumed their mortgage on the warehouse, and gave them $7,800 in cash. - On November 1, 2022, they sold their beachfront condo for $989,646, and incurred selling costs of $69,275. They had originally purchased it on October 1,2020 , for $604,230, and over the years, they had made $56,500 of improvements to the beachfront condo. They have lived in this beachfront condo continuously as their personal residence since they purchased it. Warren Peace and Noah Lott also had unused carryforward long-term capital losses from last year of $82,000 (HINT: Look at all property-related transactions first.) QUESTIONS: 1. As it relates to the exchange only, assuming all exchange requirements have been satisfied, what is their recognized gain or loss, if any? (2 points) 2. What is their total recognized capital gain or loss on the property-related transactions? (4 points) 3. Assuming they file as married jointly and use the standard deduction, what is Warren Peace and Noah Lott's 2022 taxable income? (10 points) SPECIFIC INSTRUCTIONS: - Address any issues related to social security benefits last. - For the second question, don't forget to include any capital gains or losses you may have already calculated in the first question. - Every fact given to you will need to be addressed in order to solve this question. - You may assume there are no limitations to any Adjustments to Income, if any. QUESTIONS: 1. As it relates to the exchange only, assuming all exchange requirements have been satisfied, what is their recognized gain or loss, if any? ( 2 points) 2. What is their total recognized capital gain or loss on the property-related transactions? (4 points) 3. Assuming they file as married jointly and use the standard deduction, what is Warren Peace and Noah Lott's 2022 taxable income? (10 points) SPECIFIC INSTRUCTIONS: - Address any issues related to social security benefits last. - For the second question, don't forget to include any capital gains or losses you may have already calculated in the first question. - Every fact given to you will need to be addressed in order to solve this question. - You may assume there are no limitations to any Adjustments to Income, if any. - You may ignore the Qualified Business Income Deduction and any tax credits. - All other amounts used should be for 2022 . Warren Peace and Noah Lott are married. Warren Peace is 66 years old, while Noah Lott is 65 years old. Noah Lott is blind, but Warren Peace is not. They properly claim Noah Lott's sister-who is 58-as a qualifying dependent. They present the following information to you related to their 2022 taxes: Noah Lott earned the wages while working as a professor in Canada. He begins his stay in Canada on January 3, 2022 (which is not considered a United States day), and stayed there continuously, except when he came home for 20 days during the year. Because her assignment in Costa Rica ended, she returned to the United States permanently, and arrived on December 23, 2022. (FYI, 2022 was not a leap year.) Warren Peace began to receive annuity payments on February 1, 2022. He had originally purchased the annuity in 2007 for $209,979, and he will receive 210 monthly payments of $1,515 each. Additionally, during 2022, they report the following property-related transactions: (Note: these transactions are not included in any amounts presented previously.) - On March 1, 2022, they sold a printing press used in Warren Peaces business for $11,650. They had purchased this printing press on June 1,2020 , for $22,900, and at the time of the sale, had taken $5,452 of depreciation on it. They did not incur any selling costs. - They owned a warehouse which they used for business purposes. It had been originally purchased on April 1, 2018, for \$651,000, and has accumulated depreciation of $52,163 taken on it. They still have a mortgage of \$104,600 outstanding on the warehouse. On June 9, 2022, they exchanged the warehouse (which was worth $656,000 at the time) for forestry land (which was worth \$662,000) owned by Ty Coon. They plan on holding the forestry land in hopes it will increase in value. Ty Coon also assumed their mortgage on the warehouse, and gave them $7,800 in cash. - On November 1, 2022, they sold their beachfront condo for $989,646, and incurred selling costs of $69,275. They had originally purchased it on October 1,2020 , for $604,230, and over the years, they had made $56,500 of improvements to the beachfront condo. They have lived in this beachfront condo continuously as their personal residence since they purchased it. Warren Peace and Noah Lott also had unused carryforward long-term capital losses from last year of $82,000 (HINT: Look at all property-related transactions first.) QUESTIONS: 1. As it relates to the exchange only, assuming all exchange requirements have been satisfied, what is their recognized gain or loss, if any? (2 points) 2. What is their total recognized capital gain or loss on the property-related transactions? (4 points) 3. Assuming they file as married jointly and use the standard deduction, what is Warren Peace and Noah Lott's 2022 taxable income? (10 points) SPECIFIC INSTRUCTIONS: - Address any issues related to social security benefits last. - For the second question, don't forget to include any capital gains or losses you may have already calculated in the first question. - Every fact given to you will need to be addressed in order to solve this question. - You may assume there are no limitations to any Adjustments to Income, if any. QUESTIONS: 1. As it relates to the exchange only, assuming all exchange requirements have been satisfied, what is their recognized gain or loss, if any? ( 2 points) 2. What is their total recognized capital gain or loss on the property-related transactions? (4 points) 3. Assuming they file as married jointly and use the standard deduction, what is Warren Peace and Noah Lott's 2022 taxable income? (10 points) SPECIFIC INSTRUCTIONS: - Address any issues related to social security benefits last. - For the second question, don't forget to include any capital gains or losses you may have already calculated in the first question. - Every fact given to you will need to be addressed in order to solve this question. - You may assume there are no limitations to any Adjustments to Income, if any. - You may ignore the Qualified Business Income Deduction and any tax credits. - All other amounts used should be for 2022